Cash Flows from Operating Activities - Indirect Method Selected data (in thousands) derived from the income statement and balance sheet of National Beverage Corp. for a recent year are as follows: Income statement data Net Income $49,311 Gain on disposal of property 1,188 Depreciation expense 11,580 Other items involving noncash expenses Balance sheet data: Increase in accounts receivable 1,746 Decrease in Inventory 990 Increase in prepaid expenses 605 Decrease in accounts payable 710 Decrease in accrued and other current liabilities 995 1,383 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the Indirect method for National Beverage Corp. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Enter the amounts in thousands of dollars, as shown above National Beverage Co. Cash Flows from Operating Activities (in thousands) Cash flows from operating activities! Net Income Adjustments to reconcile net income to net cash flow from operating activities: Previous Next a. Prepare the Cash Flows from Operating Activities section of the statement of cows using the Indirect method for National Beverage Corp. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Enter the amounts in thousands of dollars, as shown above National Beverage Co Cash Flows from Operating Activities (in thousands) Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash flow from operating activities Depreciation Gain on disposal of property Other items involving noncash expenses Changes in current operating assets and abilities: Increase in accounts receivable Decrease in Inventory Increase in prepaid expenses Decrease in accounts payable Decrease in accrued and other current liabilities Net cash flow from operating activities WII W 0 b. The company has earnings and net cash flow from operating activities. The increase in accounts receivable indicates (o) In sales. In addition, the company is using its cash to decrease its accounts payable balance, which indicates that the company is Overall, National Beverage is doing financially Previous Next Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on disposal of property Other items involving noncash expenses Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Decrease in accounts payable Decrease in accrued and other current liabilities Net cash flow from opera negative es positive b. The company has earnings and net cash flow from operating activities. The increase in accounts receivable indicates an in sales. In addition, the company is using its cash to decrease its accounts payable balance, which indicates that the company is Overall, National Beverage is doing financially Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on disposal of property Other items involving noncash expenses Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Decrease in accounts payable un no > Decrease in accrued and other current liabilities Net cash flow from operating activities b. The company has earnings and accounts receivable indicates an) in sal payable balance, which indicates that the company is financially, het cash flow from operating activities. The increase in kon, the company is using its cash to decrease its accounts negative Overall, National Beverage is doing positive Previous Nect Cash Flows from Operating Activities (in thousands) Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash flow from operating activities Depreciation Gain on disposal of property Other items involving noncash expenses Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in Inventory Increase in prepaid expenses Decrease in accounts payable II Decrease in accrued and other current liabilities Net cash flow from operating activitie decrease increase b. The company has and net cash flow from operating activities. The increase in accounts receivable indicates an) In sales. In addition, the company is using its cash to decrease its accounts payable balance, which indicates that the company is Overall, National Beverage is doing financially